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China Singapore Jingwei, May 21 -- On May 21, the Beijing Stock Exchange issued an inquiry letter on the annual report to Tianhong Lithium Battery, requesting to explain the reason and rationality of the company's main products and comprehensive gross profit margin's continuous decline, and whether the downward trend will continue in the future.

　　 The comprehensive gross profit margin continued to decline

Tianhong Lithium Battery's operating revenue in 2023 is 287 million yuan, down 18.80% year on year, including 281 million yuan from battery pack business, down 17.21% year on year; Other business income was 6.5336 million yuan, down 55.58% year on year. The company's operating income in the first quarter of 2024 was 93.2952 million yuan, up 69.59% year on year.

The comprehensive gross profit rates of Tianhong Lithium Battery from 2021-2023 are 17.60%, 16.01% and 10.94% respectively. The gross profit rate of battery pack in recent two years is 16.33% and 11.05% respectively.

Beijing Stock Exchange requires that, in combination with industry conditions, sales order volume, sales price and other conditions, the reason and rationality of the change of operating revenue in 2023 and the first quarter of 2024 from the same period of last year should be explained by product category, and whether the change trend is consistent with that of comparable companies in the same industry should be explained; Reply, cost collection, etc, Explain the reason and rationality of the continuous decline of the company's main products and comprehensive gross margin, whether the downward trend will continue in the future, and the countermeasures taken by the company. Ask the annual auditor to explain the audit procedures for operating revenue and operating costs, and whether the relevant audit evidence is sufficient and appropriate.

As of December 31, 2023, the book balance of Tianhong lithium battery inventory was 69.9477 million yuan, an increase of 66.98% over the end of the previous period. Among them, raw materials increased by 1.91%, goods in stock increased by 810.02%, production costs increased by 35.89%, and entrusted processing materials increased by 4536.12%. The company said that the increase in inventory was due to the increase in energy storage business orders at the end of the current period, tight delivery time and increased raw material purchase. As of March 31, 2024, the book balance of the company's inventory is RMB 80033000.

Tianhong Lithium Battery will accrue inventory falling price reserves of 1.1687 million yuan in 2023, including 943500 yuan for raw materials, 167700 yuan for goods in stock, and 57600 yuan for production costs. The Company accrued 325700 yuan of asset impairment loss in the first quarter of 2024, with a year-on-year increase of 362.26%.

The Beijing Stock Exchange proposed to explain the reason and rationality of the substantial increase of inventory, whether there is backlog, unsalable and other situations, and whether the reasons for the increase of inventory disclosed in the annual report are wrong in combination with the industry situation, orders in hand, future sales and other situations; Explain the ending inventory counting, including but not limited to the counting time, counting personnel, counting proportion, and the consistency between account and reality; In combination with income change trend, raw material price, inventory management, inventory status, etc., explain the basis for judging the existence of impairment signs of inventory by category, the calculation process of net realizable value, and whether the provision for inventory depreciation in the first quarter of 2023 and 2024 is sufficient. Ask the annual auditor to check and express clear opinions.

The ending book value of Tianhong Lithium Battery prepayments was 12.6819 million yuan, an increase of 990.92% over the end of the previous period, of which the ending book value of the top five prepayments was 10.9859 million yuan. The book value at the end of the first quarter of 2024 is 14436800 yuan.

Beijing Stock Exchange said that it would list whether there is association relationship with the top five prepayments, transaction content, purchase amount, expected delivery date and future carry forward, etc; In combination with the production plan, purchase plan, inventory management, orders in hand, etc., explain the reasons and rationality of the substantial increase in the ending prepayment compared with the beginning of the period and the continuous growth in 2024 when the income continues to decline. Ask the annual auditor to check and express clear opinions.

　　 High concentration of major customers

The ending balance of the non offset deferred income tax assets of Tianhong Lithium Battery was 8.8628 million yuan, an increase of 475.11% over the end of the previous period. Among them, the deductible temporary difference caused by the tax difference of the new business income in this year is 37.1018 million yuan, forming 5.5653 million yuan of deferred income tax assets.

Beijing Stock Exchange pointed out that, in combination with the sales method, the time point of revenue recognition, the time point of tax liability, etc., it should specify the reasons and specific circumstances for the formation of business income tax differences, and explain whether the relevant accounting treatment is consistent with the provisions of the Accounting Standards for Business Enterprises, and whether it is consistent with the previous accounting treatment. Ask the annual auditor to check and express clear opinions.

The annual sales of Tianhong Lithium Battery's main customers in this period accounted for 66.67%, an increase of 10.98 percentage points over the previous period. among The largest customer was newly added this year, with sales amount of 66.9894 million yuan, accounting for 23.30%. According to public information, the largest customer has a registered capital of 1 million yuan, 2 employees and belongs to the wholesale industry.

The annual procurement of major suppliers of Tianhong Lithium Battery in this period accounted for 46.86%. Among them, the largest supplier was newly added this year, with a purchase amount of 43.4095 million yuan, accounting for 15.89%. According to public information, the largest supplier was established on October 25, 2021, with 1 employee.

According to the requirements of Beijing Stock Exchange, in combination with the registered capital, industry, establishment time, number of employees and other information of the largest customer and supplier, explain the reason and rationality of the new largest customer and supplier this year, whether the first customer and supplier are related to the company's major shareholders, actual controllers, directors and supervisors, and whether they are related to sales (procurement) Whether there are significant differences between the content, pricing, settlement terms, credit policies and other contents of, and other non major customers and suppliers; In combination with the internal control of customer management, explain the measures taken by the company to deal with the risk of high concentration of major customers and their implementation. Ask the annual auditor to explain the audit procedures performed on major customers and suppliers and the audit evidence obtained, and explain whether the relevant audit evidence is sufficient and appropriate.

　　 Accrued asset impairment loss increased significantly

Tianhong Lithium Battery accrued 1.4348 million yuan of asset impairment loss in the current period, with a year-on-year increase of 107.62%. Among them, the accrued inventory depreciation loss was 1.1687 million yuan, other non current assets impairment loss was 274500 yuan, and contract assets impairment loss was -8420.49 yuan. The company said that the increase in asset impairment losses was mainly due to the holding subsidiary Shanghai Spiderweb's provision for long-term investment impairment losses of 1.02 million yuan.

Beijing Stock Exchange proposed that, In combination with specific items, explain the reason and rationality of the substantial increase in the asset impairment loss accrued in the current period, and verify whether the disclosure of the amount of asset impairment loss disclosed in the annual report is incorrect.

The ending balance of prepayment for Tianhong Lithium Battery was 12.6819 million yuan, 990.92% higher than that at the end of the previous period; The book value of deferred income tax assets at the end of the period was 7.7915 million yuan, an increase of 417.27% over the previous period. The Company did not explain the reasons for the changes of the above items in Section IV - Financial Analysis of the Annual Report.

The Beijing Stock Exchange said that it had not explained the reasons for the changes in relevant subjects in Section IV - Financial Analysis of the annual report, whether it was in line with the provisions of Article 22 of the Contents of Information Disclosure by Companies that Offer Securities to the Public and Various Standards No. 53 - Annual Report of Listed Companies on the Beijing Stock Exchange, and comprehensively checked whether there were other omissions in the annual report.

The official website of Tianhong Lithium Battery shows that the company, founded in 2015, is a national high-tech enterprise specializing in research and development, production, and sales of power and energy storage lithium batteries.

On the secondary market, on May 21, Tianhong Lithium ended at 7.80 yuan, with the latest market value of 800 million yuan. (Zhongxin Jingwei APP)